As spring approaches, households across the UK are reminded to check their entitlement to benefits and support, with March 2026 payment dates for universal credit, pensions, and other benefits confirmed. No bank holidays affect payments this month, so all scheduled payments will proceed as usual.
The economic backdrop remains challenging, with 63% of Brits cutting back on essentials due to the cost of living, according to the Cost of Living Action group. Meanwhile, 55% of households in poverty now include at least one working person, per the Resolution Foundation. Against this, around 24 million people claim DWP-administered benefits, yet £24bn worth of benefits goes unclaimed annually, according to Policy in Practice.
From April 2026, universal credit claimants will receive a 6.2% increase to the standard allowance, while most other benefits will rise by 3.8% in line with September's inflation rate. However, new claimants of the health-related element of universal credit will see their monthly payment cut from £105 to £50, with existing claimants' rates frozen until 2029. The state pension will increase by 4.8% to £241.05 per week.
The DWP continues to migrate all legacy benefits to universal credit by March 2026. Those still on tax credits, income support, jobseeker's allowance, or housing benefit should have received a migration notice. Additionally, the government offers interest-free budgeting advance loans for universal credit claimants facing emergencies, with repayments automatically deducted from future payments.
